Avon Products by Laura Argo

The main domain of subject study is Strategic Human Resources Management and is mainly aimed to conceptualize the concept of Talent Management. The Talent Management refers to the process employed in order to anticipate human resources requirements to an organization at particular time and include strategy formulated in order to meet that requirements (Groysberg, 2006). The talent management process includes distributing the responsibilities and accountabilities from human resources department and personnel to all departments throughout an organization. The strategic importance of locating and retaining employees around the business world has recognized this as “War for Talent”. This field of management is also termed as the Human Capital Management.

1. Provide a brief description of the status of the company that led to its determination that a change was necessary.

The Avon Products, Inc. is one among the popular American based organizations dealing in personal care manufacturing and seller firm (Groysberg, 2006). The Avon Products, Inc. is a multinational organization operating in almost 140 countries around the globe with sales revenues from its operations more than $ 10.8 billion during last fiscal year. The Avon Products Inc. is the world’s largest firm selling its products directly and is standing at fifth spot among the firms dealing in beauty and care products (Gardner, 2003). In order to achieve subject study the Case Study of Avon Products is selected and analyzed while including brief description of firm’s status which has been led to determination of changes found necessary, identification of model for change theory, identifying and investigating the types of evaluation information collected and speculation about success of changes within five years. Finally this paper includes how the adjustments could be made in the case if the results are found less than ideal.

2. Identify the model for change theory typified in the case study of your choice. Discuss what led you to identify the model that you did.

After the firms had missed the years of earnings and restructurings made during that years, and after the firm had poured tens of millions of dollars that of the bribery probe case in foreign management of firm will have to handle its new CEO a long-do list that he had to be completed in order to refurbish the organization and to brings the confidence of investors back. At that time shares of the firm surged as eleven percent while ended up at five percent on the prospect and needs of overhauling of firm under supervision of newly appointed CEO after firm has experienced years of earnings disappointments and applied restructurings (Gardner, 2003).

Newly appointed Chief Executive Officer was compelled to deal with said overhauling of firm as a whole as well as its computer system. This computer system process had led the firm’s management to snafus like not having to deal with the representatives who they have been ordered in numerous markets around the globe like but not limited to the Brazil. The management of the firm has also been dealt with different fallouts identified during the investigation of bribery during their fiscal years 2007 and 2008 therefore the new chief executive officer was required to push along the slow processes of moving to different models like the direct sales model at this stage.

Model for Change Theory:

During the course of subject study the subject section of this paper is aimed to identify model for change theory and in this regards the model identified for the change study is the trans-theoretical model for behavioral changes. The trans-theoretical model for behavioral changes refers to a model used in order to assess readiness of an individual in order to act on new healthier behaviors. This model also provides and facilitates processes employed for change guidelines to identify different stages of changes to the...

You May Also Find These Documents Helpful

...In 2006, AvonProducts success story turned ugly. After five straights years of ten percent plus growth and twenty-five percent operating profit growth under CEO Andrea Jung, the company suddenly began losing profits. One of the main reasons of this lost was the fast growth of Avon that couldn’t be supported by its employees. As with many growing organizations the structure, people and processes that were right for a $5 billion company were not necessarily a good fit for a ten billion dollar company (Goldsmith & Carter, 2010, p.2). There were weaknesses that hurt the effectiveness of the employees at the talent management practices.
Decisions on talent movement, promotions, and other key talent activities were often influenced as much by individual knowledge and emotion as by objective facts. Neither managers nor Associates have any idea about how the talent practices work. Even the HR department wasn’t sufficient to answer basic questions that might be asked by managers like “What will happen to me if I don’t do this?” (Goldsmith & Carter, 2010). Thus, changing at the talent management practices was a necessity for the company in order to increase the operation profits.
The change theory typified in AvonProducts case study is the 360 degree assessment process along with performance management and succession planning this would deliver the expected results if they were consistently and...

...
Executive Summary
AvonProducts is a well-known beauty and cosmetics company, mainly geared towards women. The company has good ethical ideals clearly stated in their values statement, and has a Code of Conduct that highlights a lot of areas of ethics and the company’s view of that aspect in regards to how each employee should act. They have a decent structure when it comes to what the company would like to see from their employees, however, it seems as though employees are not following that structure. Because of the multiple and continual infractions from their employees, I would fail the company for all of its unethical practices. The company has been getting an awful reputation, and is looked on as a troubled company. The company has been under investigation for bribery and violations of the Foreign Corrupt Policies Act ever since 2008. As of September 26th, when I conducted my initial research I noted that the company had spent around $250 million due to this investigation. That number has risen, and is continually rising. More infractions overseas in regards to bribery keep popping up, and it is costing the company ridiculous amounts of money. The fact that the company has been under investigation for five years straight, and things are STILL popping up on the radar shows that they are practicing poor ethics.
In order to repair its reputation and to align itself with ethical values once again, Avon needs to make some...

...Harvard Business School
9-289-049
Rev. August 5.1994
AvonProducts, Inc.
On June 1, 1988, Hicks B. Waldron, chairman and chief executive officer of AvonProducts, Inc., was reviewing a package of proposals that he and his financial advisors were to present to the Avon board of directors for final approval the following day. These proposals included (1) a public announcement that Avon would explore plans to divest two of its businesses, probably at a considerable book loss; (2) a reduction of the dividend on Avon's common stock; and (3) an exchange offer under which Avon would issue an unusual preferred stock in exchange for up to 25% of its common shares.
Background
AvonProducts, Inc., founded in 1886, was one of the world's largest manufacturers and marketers of beauty products. The company was famous for its direct selling beauty business, in which a sales force of independent contractors purchased products from Avon and then resold them door-to-door, largely to their friends and neighbors. In addition, by the mid-1980s , the company was an important national provider of sub-acute health care services. Avon's Beauty Group produced and sold cosmetics, fragrances, toiletries, and fashion jewelry and accessories; it also sold gift and decorative products. While it sold several...

...﻿
AvonProducts, Inc. was a leading global cosmetics company, with over $8 billion in annual revenue in 2005. As the world’s largest direct seller, the company marketed to women in 143 countries via five (5) million independent Avon Sales Representatives. Avonproduct lines included numerous popular brand names, and an extensive line of costume jewelry and clothing. Although revenues increased in 2003, 2004 and 2005, Avon’s net income was $848 million in 2005. The company met with stiff competition in the US market from other cosmetic companies. In order to maintain its market share in the US while targeting other countries, especially China, the company drastically changed its global operating structure. This brought senior management closer to its key business geographies, strengthened global integration, accelerated information flow and positioned the company for sustainable growth. Avon expected to incur costs to implement these initiatives over the next several years, with a significant portion of the total costs to be incurred during 2006. Benefits from restructuring helped to fund a notable increase in consumer investment and improved the competitiveness of its direct selling opportunity. Additionally, the company increased investment in advertising, marketing intelligence, consumer research and product innovation. The cosmetics mogul has grown from revenues of $8...

...Exchange Offer:
The exchange offer represented a plan to gradually decrease the total dividend payout from Avon. With PERCS in place, only up to 18 million PERCS holders would continue to receive a dividend of $2 per year. The remaining common shareholders would receive dividends of not more than $1.50 a share per year unless the PERCS were redeemed. Hence, Avon would be able to decrease its dividend payout per common shareholder by at least 50 cents a share for the next 3 years.
Motivation of PERCS:
Using PERCS allows Avon to offer a choice of investments to its potential investors and shareholders. PERCS would appeal to investors who want an equity that pays a high and steady stream of dividend but with a limited upside on the stock value. In this case, PERCS holders were restricted to a maximum value of $31.50 at the expiration date. On the other hand, investors who prefer to take on more risk upfront and less dividends would hold on to Avon’s common shares. In the same time, Avon also hoped that PERCS would cushion the impact of a dividend reduction.
Net Impact on Stock Price:
We would still expect Avon’s common share price to decrease once the announcement was made. This is due to several reasons. Firstly, Avon would be announcing the divestment of two businesses at a loss. This negative news would no doubt put downward pressure on its stock price. Secondly, Avon would be...

...What additional actions would you recommend AJ take to help achieve its long-term strategic and financial objectives? It's implementation efforts? What challenges might the new strategy present to Avon's top management team? What risks do you see?
Andrea Jung has done an exceptional job of identifying the problems of AvonProducts, Inc, developing a strategic vision, and outlining a plan to clearly communicate and meet the goals and objectives of the vision. She undoubtedly recognized the various areas within the company that were in dire need of improvement, in order to boost the success of the company.
There are seven major aspects of Andrea Jung's strategic execution and their business results presented within the case. AJ recognized the first and most important change needed within the Avon's strategy implementation efforts was it's ability to eliminate the cost of low-value-added activities from its value chain. With Avon's President and COO Susan Kropf in charge, the company executed plans of business process reengineering that involved supporting product development, e-commerce initiatives, better commission opportunities for independent reps, and global image building. The risk seen in this proposal, is the companies ability to continuously squeeze high amounts of cost savings elsewhere. Although, this strategy was indeed successful in past years, continues withdrawals of high funds from other areas may result in...

...﻿Erick Mejia
M.A. Suzanne Abad
ENC 3310
30 June 2013
ARGO
Argument
Argo is based on a true story happened in 1979, when a group of Iranians stormed the U.S. embassy in Tehran, kidnapping some embassy employees and fleeing six diplomats at the Embassy of Canada. Becoming it in the shelter where they would be extracted by an agent of the CIA and taken back to their country. This crisis brought diplomatic headlines of the international press who followed this stress daily enntre the administration of President Jimmy Carter and the regime of Ayatollah Kohemeni.
Characters
Ben Affleck: Tony Mendez, CIA agent, exfiltration specialist.
Alan Arkin: Lester Siegel, producer.
Bryan Cranston: Jack O'Donnell, boss of Tony Mendez
John Goodman: John Chambers
Kerry Bishé: Kathe Stafford, wife of Joe Stafford.
Kyle Chandler: Hamilton Jordan, chief of security and staff of the white house.
Rory Cochrane: Lee Schatz, tractor salesman
Christopher Denham: Mark Lijek, husband of Cora Lijek
Tate Donovan: Bob Anders, most likely to be group lider.
Clea Duvall: Cora Lijek, wife of Mark Lijek
Scoot McNairy: Joe Stafford, husband of Kathe Stafford, very negative and insecure.
Victor Garber: Ken Taylor, embassador of Canada in Teheran.
Sheila Vand: Sahar, homekeeper in Canada Embassy.
Tony Mendez (Ben Affleck) is the CIA agent specialized in exfiltration of people in critical situations. Presents to his boss, Jack O'Donnell, the release plan members...

...Movie: Argo
The movie Argo is based on the true story. In the history the story is known as the Canadian Caper. The movie is about how the production of a fake sci-fi movie was used to rescue 6 Americans from the Canadian ambassador's house in Teheran in 1980 after they were able to flee from the American embassy when Iranian militants stormed it in 1979.
It all started in 1950, when the Iranian people elected Mohammad Mosaddegh as prime minister. He nationalized Iranian oil industry, which was under British control since 1913. This way the Iranian population was in charge again over the Iranian oil. But in 1953 Masaddegh was removed from power through cooperation between the American CIA and the British MI6. Mahammed Reza Pahlavi was installed as Shah. He kept his power through the police and by threatening people. It was a time of threat, fear and torture began and then he started to westernize Iran and enraged the mostly Shihad population of Iran. All this ended in 1979 when the people overthrow the Shah and Khomeini returned as the supreme leader of the Iranian revolution from his exile. He spent the last 15 years in exile due to his opposition against the Shah. After Khomeini had the power in Iran it resulted in firing squads and chaos. Meanwhile the shah and his family were able to leave Iran. In 1979 the shah was given asylum in the US because he was dying of cancer. The Iranian people gathered on the streets around the US-embassy...